Photon Energy N.V.

Regulatory Filings • Jul 14, 2021

Photon Energy N.V.

Monthly Report for June 2021

For the period from 1 to 30 June 2021

1. Information on the occurrence of trends and events in the market environment of the Issuer, which in the Issuer's opinion may have important consequences in the future for the financial condition and results of the Issuer

1.1 Production results of Photon Energy's power plants in the reporting period

The Company reports 47.6 GWh of electricity produced YTD compared to 37.0 GWh one year ago (+28.7%), propelled by the addition of new Hungarian power plants over the past year (14.1 MWp added since June 2020). This represents an avoidance of 18,873 tonnes of CO2 emissions for the first six months of 2021.

In June the overall performance of the power plants in Photon Energy's portfolio came in approximately 15.4% above expectations and the overall performance of the proprietary portfolio is in line with forecasts year-to-date (+0.2%),

For more information, please refer to chapter 2. Proprietary PV power plants.

1.2 Photon Energy Group Receives 'Very Good' Rating from Sustainability Rating Agency imug | rating

On 1 June 2021, the Company received its first sustainability rating, being awarded a rating of 'very good' with 75 out of 100 points by imug | rating, an independent institution that assessed the Company's policies and activities in the area of sustainability. imug's ratings are attributed based on the following scale: weak, moderate, good, very good, excellent.

We are proud that our ESG practices have been rated 'very good' by imug | rating. This validates our strategy, which sees sustainability as a key driver of value creation for our Company. Since it is our mission to make a positive societal contribution through a strong focus on sustainability, we attach much value to this rating as a demonstration of our commitment to transparency and trustworthiness to our stakeholders.

1.3 Photon Energy Group Participates in AUD 42 Million RayGen Series C Capital Raise

During the reporting period, the Company announced that it has participated in an AUD 42 million (EUR 26.7 million) capital raise in the Melbourne-based deep-technology originator and developer of innovative solar-plus-storage projects RayGen Resources Pty Ltd ('RayGen').

The round comprises AUD 27 million (EUR 17.2 million) of strategic investments by AGL, Schlumberger New Energy and Chevron Technology Ventures, alongside other new and existing investors, including Photon Energy Group. This private funding has been matched with AUD 15 million (EUR 9.5 million) of non-dilutive, recoupable grant funding by ARENA. The Company entered a strategic partnership with and announced its initial investment in RayGen in April 2020, joining other investors in the hi-tech company.

Acting as a project developer and EPC contractor and – where suitable – as an equity investor in joint projects, Photon Energy made a follow-on equity investment of AUD 3 million (EUR 1.9 million) maintaining about 9% in the technology company.

RayGen intends to deploy proceeds from the funding to build, commission and operate the 50 MWh RayGen Power Plant Carwarp (RPPC). AGL has provided an offtake for this project and is collaborating on a feasibility study for the RayGen technology at AGL's Liddell facility. The funds will also be used to design and build a new 100MW p.a. module manufacturing line (expanding existing capacity from 25MW to 125MW p.a.), as well as enable project development of a pipeline of 1GWh+ projects to financial close.

1.4 Photon Energy Group Successfully Raises 7.7 Million Euro by Offering Its Existing Shares

On 25 June 2021, the Company announced the results of an offering of its existing treasury shares addressed to qualified investors. In total, 5 million shares were placed at a price of PLN 7.0, which corresponds to the gross amount of PLN 35.0 million (EUR 7.7 million).

With the new equity raised, we have achieved a major step towards financing our recently announced growth strategy, with a focus on expanding our clean electricity generation asset base and building recurring revenue streams from our fully integrated business model. We are very pleased to welcome as shareholders Polish and international investors who have participated in the Offering and expressed confidence in our growth strategy.

The Offering of 5 million existing treasury shares representing 8.33 % of the Company's share capital increases the free float from 14.36% to 22.69%. The price of the Offering was set at PLN 7.00 per share. The majority shareholders underlined their commitment to the Company by not placing any of their own shares. The Company decided not to place any employee shares in the Offering.

Photon Energy Group intends to use the proceeds from the Offering in the acceleration of the plan to grow the business, as outlined in the recently announced 2021-2024 development strategy. By 2024, the Company intends to expand its proprietary PV power plant portfolio from 74.7 MWp to at least 600 MWp of installed capacity in operation. It will also control a PV project pipeline of 1.5 GWp and grow its operations and maintenance (O&M) portfolio to 1.0 GWp, as compared to the current total of 300 MWp.

As a result of the accelerated growth of the business, the management board expects the 2024 EBITDA to grow by approximately five-fold as compared to 2020 figures.

IPOPEMA Securities is acting as the global coordinator and bookrunner, Bankhaus Scheich Wertpapierspezialist AG as Co-Manager in the Offering.

1.5 Reporting on Photon Energy's project pipeline

Photon Energy is currently developing PV projects in Australia (174.6 MWp), Hungary (99.3 MWp), Romania (190.1 MWp) and Poland (77.1 MWp), and is evaluating further markets for opportunities.

For detailed information, please refer to chapter 3 "Reporting on Photon Energy's project pipeline".

2. Proprietary PV power plants

The table below represents power plants owned directly or indirectly by Photon Energy N.V. as of the date of the report.

Table 1. Production results in June 2021

Project name	Capacity	Feed-in-Tariff	Prod. 2021 June	Proj. 2021 June	Perf.	YTD Prod.	YTD Proj.	Perf.	YTD YoY
Unit	kWp	per MWh, in 2021	kWh	kWh	%	kWh	kWh	%	%
Komorovice	2,354	CZK 15,117	361,575	313,839	15.2%	1,211,550	1,327,760	-8.8%	-13.7%
Zvíkov I	2,031	CZK 15,117	317,521	285,917	11.1%	1,151,825	1,225,845	-6.0%	-11.1%
Dolní Dvořiště	1,645	CZK 15,117	249,122	220,949	12.8%	851,562	874,063	-2.6%	-6.4%
Svatoslav	1,231	CZK 15,117	182,577	160,562	13.7%	589,714	627,623	-6.0%	-10.2%
Slavkov	1,159	CZK 15,117	193,030	173,338	11.4%	694,956	716,273	-3.0%	-8.2%
Mostkovice SPV 1	210	CZK 15,117	32,734	28,911	13.2%	111,612	118,679	-6.0%	-9.8%
Mostkovice SPV 3	926	CZK 16,240	148,291	128,733	15.2%	507,925	525,831	-3.4%	-7.6%
Zdice I	1,499	CZK 15,117	230,952	216,406	6.7%	854,541	905,441	-5.6%	-10.0%
Zdice II	1,499	CZK 15,117	235,873	221,097	6.7%	877,914	918,705	-4.4%	-9.2%
Radvanice	2,305	CZK 15,117	360,739	331,525	8.8%	1,256,279	1,342,091	-6.4%	-10.3%
Břeclav rooftop	137	CZK 15,117	23,139	20,281	14.1%	82,530	84,714	-2.6%	-7.9%
Total Czech PP	14,996		2,335,553	2,101,560	11.1%	8,190,407	8,667,025	-5.5%	-10.0%
Babiná II	999	EUR 425.12	154,061	134,033	14.9%	504,618	501,462	0.6%	-2.3%
Babina III	999	EUR 425.12	158,749	133,957	18.5%	519,614	508,564	2.2%	-2.8%
Prša I.	999	EUR 425.12	132,154	142,345	-7.2%	507,252	544,527	-6.8%	-6.1%
Blatna	700	EUR 425.12	115,569	100,585	14.9%	375,452	376,758	-0.3%	-3.5%
Mokra Luka 1	963	EUR 382.61	163,912	141,142	16.1%	609,466	581,381	4.8%	-5.8%
Mokra Luka 2	963	EUR 382.61	164,287	140,389	17.0%	621,651	615,172	1.1%	-5.1%
Jovice 1	979	EUR 382.61	131,068	119,501	9.7%	443,932	456,638	-2.8%	-5.8%
Jovice 2	979	EUR 382.61	130,658	115,482	13.1%	441,942	449,206	-1.6%	-6.2%
Brestovec	850	EUR 382.61	107,054	126,879	-15.6%	486,487	537,900	-9.6%	-15.8%
Polianka	999	EUR 382.61	160,355	133,717	19.9%	495,328	508,268	-2.5%	-6.9%
Myjava	999	EUR 382.61	172,820	146,277	18.1%	581,123	589,109	-1.4%	-8.7%
Total Slovak PP	10,429		1,590,686	1,434,307	10.9%	5,586,867	5,668,985	-1.4%	-6.4%
Tiszakécske 1	689	HUF 34,140	119,684	103,571	15.6%	452,128	445,139	1.6%	-2.9%
Tiszakécske 2	689	HUF 34,140	119,942	103,709	15.7%	454,987	447,780	1.6%	-2.8%
Tiszakécske 3	689	HUF 34,140	118,951	102,930	15.6%	441,440	436,531	1.1%	-2.7%
Tiszakécske 4	689	HUF 34,140	119,962	103,709	15.7%	456,141	447,780	1.9%	-2.8%
Tiszakécske 5	689	HUF 34,140	119,010	103,571	14.9%	443,235	445,139	-0.4%	-4.4%
Tiszakécske 6	689	HUF 34,140	119,294	103,709	15.0%	453,124	447,780	1.2%	-2.9%
Tiszakécske 7	689	HUF 34,140	119,448	103,537	15.4%	453,901	444,883	2.0%	-2.5%
Tiszakécske 8	689	HUF 34,140	119,337	103,420	15.4%	450,726	443,534	1.6%	-2.7%
Almásfüzitő 1	695	HUF 34,140	118,661	102,487	15.8%	445,753	444,443	0.3%	-1.7%
Almásfüzitő 2	695	HUF 34,140	116,140	102,444	13.4%	434,414	444,151	-2.2%	-2.3%
Almásfüzitő 3	695	HUF 34,140	114,650	102,280	12.1%	433,660	442,180	-1.9%	0.0%
Almásfüzitő 4	695	HUF 34,140	119,093	102,613	16.1%	447,414	445,360	0.5%	-2.4%
Almásfüzitő 5	695	HUF 34,140	119,495	102,334	16.8%	453,884	442,816	2.5%	-2.4%
Almásfüzitő 6	660	HUF 34,140	119,402	98,420	21.3%	451,523	426,514	5.9%	-2.4%
Almásfüzitő 7	691	HUF 34,140	119,479	101,767	17.4%	449,630	440,334	2.1%	-2.6%
Almásfüzitő 8	668	HUF 34,140	120,405	99,460	21.1%	451,495	431,364	4.7%	-2.2%
Nagyecsed 1	689	HUF 34,140	118,296	103,939	13.8%	441,555	438,204	0.8%	-3.0%
Nagyecsed 2	689	HUF 34,140	118,078	103,939	13.6%	443,052	438,204	1.1%	-3.0%
Nagyecsed 3	689	HUF 34,140	118,064	104,131	13.4%	444,365	438,536	1.3%	-3.2%
Fertod I	528	HUF 34,140	94,843	74,196	27.8%	353,722	329,104	7.5%	-6.9%

Project name	Capacity	Feed-in-Tariff	Prod. 2021 June	Proj. 2021 June	Perf.	YTD Prod.	YTD Proj.	Perf.	YTD YoY
Unit	kWp	per MWh, in 2021	kWh	kWh	%	kWh	kWh	%	%
Fertod II No 2	699	HUF 34,140	114,226	100,706	13.4%	447,262	446,139	0.3%	-7.2%
Fertod II No 3	699	HUF 34,140	126,209	100,706	25.3%	460,959	446,139	3.3%	-4.3%
Fertod II No 4	699	HUF 34,140	120,643	100,706	19.8%	455,352	446,139	2.1%	-5.4%
Fertod II No 5	691	HUF 34,140	125,124	101,076	23.8%	457,409	449,253	1.8%	-4.6%
Fertod II No 6	699	HUF 34,140	124,410	100,706	23.5%	456,796	446,139	2.4%	-4.4%
Kunszentmárton I No 1	697	HUF 34,140	123,509	108,197	14.2%	474,075	463,932	2.2%	-1.7%
Kunszentmárton I No 2	697	HUF 34,140	123,921	108,203	14.5%	470,935	463,991	1.5%	-1.3%
Kunszentmárton II No 1	693	HUF 34,140	124,605	104,231	19.5%	481,834	438,348	9.9%	324.1%
Kunszentmárton II No 2	693	HUF 34,140	124,805	104,231	19.7%	482,597	438,647	10.0%	178.0%
Taszár 1	701	HUF 34,140	122,094	107,158	13.9%	464,865	466,894	-0.4%	-4.0%
Taszár 2	701	HUF 34,140	121,989	107,158	13.8%	464,700	466,894	-0.5%	-4.3%
Taszár 3	701	HUF 34,140	121,777	107,158	13.6%	466,281	466,894	-0.1%	-3.2%
Monor 1	688	HUF 34,140	119,846	105,740	13.3%	466,668	448,926	4.0%	1.1%
Monor 2	696	HUF 34,140	115,659	105,800	9.3%	461,581	457,635	0.9%	-1.7%
Monor 3	696	HUF 34,140	118,524	105,800	12.0%	460,975	457,635	0.7%	-0.7%
Monor 4	696	HUF 34,140	119,123	105,800	12.6%	464,519	457,635	1.5%	-0.8%
Monor 5	688	HUF 34,140	118,846	99,962	18.9%	464,736	447,539	3.8%	-1.4%
Monor 6	696	HUF 34,140	119,377	105,800	12.8%	463,889	457,635	1.4%	-1.4%
Monor 7	696	HUF 34,140	119,520	105,800	13.0%	465,095	457,635	1.6%	-1.7%
Monor 8	696	HUF 34,140	119,338	105,800	12.8%	463,080	457,635	1.2%	-1.3%
Tata 1	672	HUF 34,140	146,149	126,910	15.2%	481,309	493,100	-2.4%	13.6%
Tata 2	676	HUF 34,140	113,599	101,913	11.5%	425,785	442,537	-3.8%	15.7%
Tata 3	667	HUF 34,140	113,781	100,280	13.5%	425,312	432,834	-1.7%	9.6%
Tata 4	672	HUF 34,140	147,635	129,564	13.9%	485,349	504,523	-3.8%	13.7%
Tata 5	672	HUF 34,140	147,603	129,910	13.6%	443,013	506,138	-12.5%	3.1%
Tata 6	672	HUF 34,140	146,488	128,160	14.3%	483,720	498,489	-3.0%	9.8%
Tata 7	672	HUF 34,140	145,704	126,980	14.7%	483,512	493,416	-2.0%	11.2%
Tata 8	672	HUF 34,140	147,538	128,702	14.6%	489,371	500,686	-2.3%	15.6%
Malyi 1	695	HUF 34,140	122,100	104,588	16.7%	443,921	440,449	0.8%	149.1%
Malyi 2	695	HUF 34,140	122,315	104,691	16.8%	444,763	440,993	0.9%	148.1%
Malyi 3	695	HUF 34,140	122,396	104,691	16.9%	444,897	440,993	0.9%	146.9%
Puspokladány 1	1,406	HUF 34,140	309,376	262,306	17.9%	1,055,101	1,033,029	2.1%	#DIV/0!
Puspokladány 2	1,420	HUF 34,140	318,193	257,088	23.8%	1,074,486	1,005,541	6.9%	#DIV/0!
Puspokladány 3	1,420	HUF 34,140	312,518	252,621	23.7%	1,058,572	983,393	7.6%	#DIV/0!
Puspokladány 4	1,406	HUF 34,140	309,757	260,729	18.8%	1,053,944	1,026,321	2.7%	#DIV/0!
Puspokladány 5	1,420	HUF 34,140	315,116	256,791	22.7%	1,077,985	1,003,970	7.4%	#DIV/0!
Puspokladány 6	1,394	HUF 34,140	307,329	259,592	18.4%	1,045,258	1,017,738	2.7%	#DIV/0!
Puspokladány 7	1,406	HUF 34,140	311,352	260,611	19.5%	1,052,286	1,025,878	2.6%	#DIV/0!
Puspokladány 8	1,420	HUF 34,140	312,621	253,256	23.4%	1,059,171	986,407	7.4%	#DIV/0!
Puspokladány 9	1,406	HUF 34,140	309,957	260,494	19.0%	992,095	1,025,440	-3.3%	#DIV/0!
Puspokladány 10	1,420	HUF 34,140	312,315	252,429	23.7%	1,056,916	982,712	7.6%	#DIV/0!
Total Hungarian PP	49,098		9,369,624	7,979,208	17.4%	33,726,522	33,086,044	1.9%	54.5%
Symonston	144	AUD 301.60	6,440	7,079	-9.0%	81,715	83,557	-2.2%	7.0%
Total Australian PP	144		6,440	7,079	-9.0%	81,715	83,557	-2.2%	7.0%
Total	74,667		13,302,304	11,522,154	15.4%	47,585,511	47,505,611	0.2%	28.7%

Notes:

Capacity: installed capacity of the power plant

Prod.: production in the reporting month - Proj.: projection in the reporting month

Perf.: performance of the power plant in reporting month i.e. (production in Month / projection for Month) - 1.

YTD Prod.: accumulated production year-to-date i.e. from January until the end of the reporting month.

YTD Proj.: accumulated projection year-to-date i.e. from January until the end of the reporting month

Perf. YTD: performance of the power plant year-to-date i.e. (YTD prod. in 2021 / YTD proj. in 2021) – 1

YTD YOY: (YTD Prod. in 2021 / YTD Prod. in 2020) – 1.

.

Chart 1.a Total production of the Czech portfolio Chart 1.b Total production of the Slovak portfolio

Chart 1.c Total production of Hungarian portfolio

Chart 2. Generation results versus forecast between 1 January 2016 and 30 June 2021

Specific Performance Ratio is a measure of efficiency which shows the amount of kWh generated per 1 kWp of installed capacity and enables the simple comparison of year-on-year results and seasonal fluctuations during the year.

The Company reports 47.6 GWh of electricity produced YTD compared to 37.0 GWh one year ago (+28.7%), propelled by the addition of new Hungarian power plants over the past year (14.1 MWp added since June 2020). This represents an avoidance of 18,873 tonnes of CO² emissions for the first six months of 2021.

In June the overall performance of the power plants in Photon Energy's portfolio came in approximately 15.4% above expectations and the overall performance of the proprietary portfolio is in line with forecasts year-to-date (+0.2%),

3. Reporting on Photon Energy's project pipeline

Project development is a crucial activity in Photon Energy's business model of covering the entire value chain of PV power plants. The main objective of project development activities is to expand the PV proprietary portfolio, which provides recurring revenues and free cash flows to the Group. For financial or strategic reasons Photon Energy may decide to cooperate with third-party investors either on a joint-venture basis or with the goal of exiting the projects to such investors entirely. Ownership of project rights provides Photon Energy with a high level of control and allows locking in EPC (one-off) and O&M (long-term) services. Hence, The best performance was recorded by our Hungarian portfolio, which exceeded energy forecasts by 17.4% and then by our Czech and Slovak portfolios, which outperformed the audits by 11.1% and 10.9%, respectively. The performance of our Australian power plant was short of estimates by 9.0%).

The specific performance ratio of the proprietary portfolio (SPR) reached 178.2 kWh/kWp compared to 126.3 kWh/kWp one year ago (+41.0% year-on year).

project development is a key driver for Photon Energy's future growth. The Group's experience in project development and financing in the Czech Republic, Slovakia, Germany, Italy and Hungary is an important factor in selecting attractive markets and reducing the inherent risks related to project development.

Photon Energy is currently developing PV projects in Australia (174.6 MWp), Hungary (99.3 MWp), Romania (190.1 MWp) and Poland (77.1 MWp), and is evaluating further markets for opportunities.

Country	1. Feasibility*	2. Early development	3. Advanced development	4. Ready-to-build technical	5. Under construction	Total in MWp
Australia	-		160.0	-	14.6	174.6
Hungary	70.7	27.2	1.4	-	-	99.3
Romania	87.4	102.7	-	-	-	190.1
Poland	45.7	31.4	-	-	-	77.1
Total in MWp	203.8	161.4	161.4	-	14.6	541.1

*Development phases are described in the glossary available at the end of this chapter.

PV projects have two definitions of capacity. The grid connection capacity is expressed as the maximum of kilowatts or megawatts which can be fed into the grid at any point in time. Electricity grids run on alternating current (AC). Solar modules produce direct current (DC), which is transformed into AC by inverters. Heat, cable lines, inverters and transformers lead to energy losses in the system be-tween the solar modules and the grid connection point. Cumulatively system losses typically add up to 15-20%. Therefore, for a given grid connection capacity a larger module capacity (expressed in Watt peak – Wp) can be installed without exceeding the grid connection limit. At times of extremely high production, inverters can reduce the volume of electricity so that the plant stays within the grid connection limits. Photon Energy will refer to the installed DC capacity of projects expressed in Megawatt peak (MWp) in its reporting, which might fluctuate over the project development process.

Projects having reached an advanced development phase, as well as projects for which sufficient details can be disclosed are described in the table below:

Country	Location	Dvt Phase	Project function	Share	MWp	Commercial Model	Land	Grid connection	Construction permit	Expected RTB
Australia	Leeton	5	Own portfolio	100%	7.3	Merchant	Secured	Secured	Secured	Commissioning
Australia	Fivebough	5	Own Portfolio	100%	7.3	Merchant	Secured	Secured	Secured	process in progress
Australia	Maryvale	3	Developer	65%	160.0	Co development	Secured	Ongoing	Secured	Q1 2022
Hungary	Tolna 1	3	Own portfolio	100%	1.4	Contract-for difference	Secured	Secured	Secured	Q3 2021
Hungary	Tolna 2	2	Own Portfolio	100%	27.2	All options open	Secured for some projects	Secured	Secured	Q3 2021

¹ Contr.-for-Diff stands for 'Contract for difference' and is a revenue model in form of electricity sales on the electricity spot market plus the compensation of the difference to a guaranteed Feed-in-Tariff.

Australia

As of the date of publishing this report, Photon Energy has three large scale solar farms at different stages of development in New South Wales ("NSW).

On 13 April, the Company announced an agreement to exchange project rights with its development partner Canadian Solar. As a result, Photon Energy will continue developing the 160 MWp Maryvale Solar Farm project independently, while further development of Gunning Solar Farm and Suntop 2 Solar Farm projects will be handled by Canadian Solar.

Until that date, these three projects were co-developed with Canadian Solar as part of an agreement concluded in 2018 (to date, two other projects, Suntop 1 with 189MW and Gunnedah with 146MW, have been successfully developed and sold in the scope of this cooperation):

Under the terms of the agreement, Photon Energy has exchanged its 49% stake in the 220 MWp Gunning Solar Farm project and 25% stake in the 200 MWp Suntop 2 Solar Farm project for Canadian Solar's stake in the Maryvale Solar Farm project. As part of the transaction, the Company now possesses a 65% stake and the original local co-development partner will continue its work on the project holding a 35% stake in the project.

Of the three projects, Maryvale is in the furthest stages of development. The Company expects to undertake preliminary design and grid connection studies within the next six months, followed by a Connection Agreement which is expected to be reached early next year.

Maryvale Solar Farm has development approval and is located in the NSW Central-West Orana Renewable Energy Zone, which is earmarked to unlock up to 3 GW of network capacity by the mid-2020s.

► Development status for Maryvale (160 MWp): Development Approval was granted on 4 December 2019. The grid connection options are still in progress with Essential Energy. We are currently preparing for Grid Protection Study (GPS) and it is expected that project development can be completed within Q1 2022.

The current status of other projects developed by Photon Energy is summarized below:

► Leeton and Fivebough (Total capacity 14.6 MWp): In May 2020, Photon Energy announced the conclusion of an agreement with Infradebt for the project debt financing of the two PV power plants we are developing in Leeton, with a grid connection capacity of 4.95 MWp AC and an installed capacity of 7.3 MWp DC each.

Photon Energy Engineering Australia Pty Ltd. is acting as engineering, procurement and construction (EPC) contractor for both projects. After commissioning long-term O&M services will be provided by Photon Energy Operations Australia Pty Ltd.

The plants' bi-facial PV modules are mounted on singleaxis trackers and will supply the produced electricity to Essential Energy's distribution network as non-scheduled generators. The combined annual electricity production of both PV power plants is forecast to be 27.8 GWh, and will be sold on the National Electricity Market on a merchant basis, as will the Large Generation Certificates (LGCs) generated by the plants. No power purchase agreements (PPAs) have been entered into by Photon Energy.

These are the two largest projects to be added to Photon Energy's portfolio to date, and our first merchant projects providing competitive energy into the market. The experience we gain in operating the power plants will be used to maximise revenues in the energy market.

► Construction status: The project works have been completed and we are finalising the commissioning process. We intend to connect both plants and begin injection to the grid by July/August 2021.

Glossary of terms	Definitions
Development phase 1: "Feasibility"	LOI or MOU signed, location scouted and analyzed, working on land lease/purchase, environmental assessment and applica tion for grid connection.
Development phase 2: "Early development"	Signing of land option, lease or purchase agreement, Environmental assessment (environmental impact studies "EIS" for Australia), preliminary design. Specific to Europe: Application for Grid capacity, start work on permitting aspects (construction, connection line, etc.). Specific to Australia: community consultation, technical studies.
Development phase 3: "Advanced development"	In Europe: Finishing work on construction permitting, Receiving of MGT (HU)/ATR (ROM) Letter, Finishing work on permitting for connection line, etc. In Australia: Site footprint and layout finalised, Environmental Impact Statement and development application lodged. Grid connection studies and design submitted.
Development phase 4: "Ready-to-build technical"	In Europe: Project is technical ready to build, we work on offtake model (if not FIT or auction), securing financing (inter nal/external). In Australia: Development application approved, offer to connect to grid received and detailed design commenced. Financing and off-take models/arrangements (internal/external) under negotiation.
Development phase 5: "Under construction"	Procurement of components, site construction until the connection to the grid. On top for Australian projects, signature of Financing and off-take agreements, reception of Construction certificate, conclusion of connection agreement, EPC agree ment, Grid connection works agreements.

Glossary of terms	Definitions
NSW Department for Planning and Environment (DP&E)	NSW DP&E is a government agency in charge of planning and development of New South Wales, to ensure the balance between the commercial business development and the needs of local communities. Each project submitted to DP&E must include environmental impact studies (EIS) and once it is reviewed by DP&E, the project is published and available for the public opinion to submit their comments. If the project is rejected by more than 25 people it is moved to Independent Planning Committee (IPC) for review. If there is no public opposition, the project is approved and DP&E issues the project Development Approval (DA)
Independent Planning Com mittee (IPC)	In case more than 25 public petitions against the project are submitted, IPC needs to investigate further into social and envi ronmental impact of the project. IPC might make some recommendations to be made to the project plan to secure the issu ance of DA.
Essential Energy	Essential Energy is Distribution Network Service Provider, which operates and manages low voltage electricity network in NSW. The process to secure the grid connection with Essential Energy includes GPS and AEMO's license.
Transgrid	Transgrid is a Distribution Network Service Provider (DNSP), which operates and manages the NSW high voltage transmis sion network. Transgrid, in co-operation with Australian Energy Market Operator (AEMO, see description below), is in charge of grid connection approval. To issue its decision Transgrid requires Generation Protection Studies (GPS). GPS is a complete analysis and tests of the impact that a potential power plant would have on the grid. Each power plant is tested under different assumptions (extreme weather conditions, demand/supply changes etc.) and its performance/impact on the grid's stability is thoroughly analysed. Once GPS are completed and accepted, Transgrid is issuing grid connection terms. Those terms are part of the agreement signed with Transgrid, which together with AEMO license secures and finalizes the grid connection process.
Australian Energy Market Operator (AEMO)	AEMO is responsible for operating Australia's largest gas and electricity markets and power systems. AEMO is overlooking all energy producers in NSW and is involved in the process of grid connection approval. AEMO reviews the grid connection terms and GPS studies and issues the license to feed electricity to the grid. AEMO also controls the on-going power generation to make sure that grid stability is maintained.

Hungary

Below is a short summary of projects in the pipeline and of the progress achieved in the reporting period.

► Tolna (28.6 MWp): The thirteen projects with a total planned installed DC capacity of 28.6 MWp are located in the Tolna region in the south of Hungary. Two power plants have a grid connection capacity of 5.0 MW AC each, whereas 1 MW AC have been secured for each of the remaining eleven projects. The grid connection points have been secured and the negotiations for suitable land plots have been finalized for several projects. Grid connection plans have been initiated and already partially approved, to allow us to conclude grid connection agreements with E.ON. with a validity of two years.

On 8 December 2020, one of the 1MW AC (approx. 1.4 MWp DC) project was granted a METAR premium of 24,470 HUF/MWh (approx. EUR 68 per MWh) with a maximum supported production of 21,585 MWh over a period of up to 15 years. This achievement results from the approval of the project application to the first pilot tender for the METAR system organized in September 2019.

The revenue model will either take the form of a contractfor-difference based on METÁR licenses (for projects proving successful through an auction process in the future), a PPA, or the direct sale of electricity through a trader on the Hungarian electricity market. Construction plans include the use of tracking technology allowing bifacial solar modules to follow the course of the sun, which are expected to achieve a 15-20% higher specific performance than fixed installations.

Now the team has solidified grid capacity, land, and a commercial structure, the projects will continue to take shape as they move towards construction and realization.

The current project pipeline in Hungary consists of 15 projects with a total planned capacity of 99.3 MWp.

4. Enterprise value & Share price performance

4.1 Main market of the Warsaw Stock Exchange

On 30 June 2021 the Company's shares (ISIN NL0010391108) closed at a price of PLN 7.80 (-31.6% MoM), corresponding to a price to book ratio of 2.02. The monthly trading volume amounted to 2,571,166 shares (vs. an average monthly volume of 578,296 YTD).

Chart 4. Enterprise value vs. trailing 12 months (TTM) EBITDA

Notes:

EV – Enterprise value is calculated as the market capitalisation as of the end of the reporting month, plus debt, plus minority interest, minus cash. All the balance sheet data are taken from the last quarterly report.

Trailing 12 months EBITDA – defined as the sum of EBITDA reported in the last four quarterly reports; i.e. the sum of EBITDA reported in Q2 2020, Q3 2020, Q4 2020, and Q1 2021.

Trading of the Company's shares on the regulated market of the Warsaw Stock Exchange (WSE) (Giełda Papierów Wartościowych w Warszawie) commenced on 5 January 2021. Prior to that date, data presented in this section have been extracted from the trading activity on NewConnect.

Chart 5. Enterprise value / trailing 12 months EBITDA and price to book ratio

Price/book ratio – is calculated by dividing the closing price of the stock as of the end of the reporting period by the book value per share reported in the latest quarterly report.

EV/EBITDA ratio – is calculated by dividing the Enterprise Value by the Trailing 12 months (TTM) EBITDA.

Chart 6. Total monthly volumes vs. daily closing stock prices

4.2 Main market of the Prague Stock Exchange

On 30 June 2021 the share price (ISIN NL0010391108) closed at a level of CZK 47.00 (-35.6% MoM), corresponding to a price to book ratio of 2.16x. The Company reports a monthly trading volume of 348,178 shares in June, compared to an average monthly trading volume of 101,971 YTD.

Trading of the Company's shares on the regulated market of the Prague Stock Exchange (PSE) (Burza cenných papírů Praha) commenced on 5 January 2021. Prior to that date, Data have been extracted from the trading activity on the Free Market of the Prague Stock Exchange.

4.3 Quotation Board of the Frankfurt stock exchange

On 30 June 2021 the share price (FSX: A1T9KW) closed at a level of EUR 1.68 (-33.9% MoM), corresponding to a price to book ratio of 1.97x.

The Company reports a monthly trading volume of 163,720 shares in June, compared to an average monthly trading volume of 43,257 YTD.

The Company's shares have been traded on the Quotation Board of the Frankfurt Stock Exchange since 11 January 2021.

5. Bond trading performance

In December 2016 the Company issued a 7-year corporate bond with a 6% annual coupon and monthly payments in the Czech Republic. The corporate bond (ISIN CZ0000000815) with a nominal value of CZK 30,000 has been traded on the Free Market of the Prague Stock Exchange since 12 December 2016.

On 27 October 2017 the Company issued a 5-year corporate EUR bond with a 7.75% annual coupon and quarterly coupon payments in Germany, Austria and Luxemburg. The original target volume of EUR 30 million has been subscribed to in full on

5.1 EUR Bond 2017/22 trading performance

EUR Bond 2017-22 trading performance to date

In the trading period from 25 October 2017 until 30 June 2021, the trading volume amounted to EUR 50.374 million (nominal value, including the volume traded in Berlin, Munich & Stuttgart) with an opening price of 100.00 and a closing price of 102.50 in Frankfurt. During this period the average daily turnover amounted to EUR 54,282.

Chart 7. The Company's EUR bond 2017/22 trading on the Frankfurt Stock Exchange in Germany

5.2 CZK Bond 2016/23 trading performance in Prague

In the trading period from 12 December 2016 until 30 June 2021, the trading volume amounted to CZK 33.690 million with a closing price of 100.00.

Since 28 July 2020, the Company's shares have already been traded on the Free Market (Freiverkehr) of the Munich Stock Exchange.

In addition the Company's shares have also been traded on the Free Market (Freiverkehr) of the Berlin Stock Exchange since 13 January 2021, and on the Free Market (Freiverkehr) of the Stuttgart Stock Exchange since 14 January 2021.

7 September 2018, before the end of the public placement period originally set until 20 September 2018. The corporate bond (ISIN DE000A19MFH4) with a nominal value of EUR 1,000 has been traded on the Open Market of the Frankfurt Stock exchange since 27 October 2017. The bond is also listed on the stock exchanges in Berlin, Hamburg, Hannover, Munich and Stuttgart. The Group has successfully increased the bond placement by EUR 7.5 million in 2019, and EUR 7.5 million in 2020 with all parameters unchanged. The total outstanding bond volume amounts to EUR 45.0 million as of the end of the reporting period.

EUR Bond 2017/22 trading performance in June 2021

In June 2021 the trading volume amounted to EUR 361,000 with an opening price of 103.40 and a closing price of 102.50 in Frankfurt. The average daily turnover amounted to EUR 16,409.

Chart 8. MIN, MAX and closing monthly prices

6. Summary of all information published by the Issuer as current reports for the period covered by the report

No reports have been published in the EBI (Electronic Database Information) system of the Warsaw Stock Exchange during or after the reporting period.

In the period covered by this report the following current reports have been published in the ESPI (Electronic Information Transmission System) system of the Warsaw Stock Exchange:

• ► ESPI report 21 01.06.2021 List of shareholders holding at least 5% of votes at the Annual General Meeting to be held on 1 June 2021.
• ► ESPI report 22 01.06.2021 The Minutes of the AGM of shareholders held on 1 June 2021.
• ► ESPI report 23 02.06.2021 Photon Energy Group Receives 'Very Good' Rating from Sustainability Rating Agency imug | rating.
• ► ESPI report 24 08.06.2021 Photon Energy Group participates in AUD 42 Million RayGen series C capital raise.
• ► ESPI report 25 10.06.2021 Photon Energy Group announces long-term strategy guidance.
• ► ESPI report 26 10.06.2021 Monthly Report for May 2021.
• ► ESPI report 27 16.06.2021 Information About Commencement of the Offering of Existing Shares of Photon Energy N.V..
• ► ESPI report 28 22.06.2021 Convocation of an Extraordinary General Meeting of Shareholders on 5 August 2021.
• ► ESPI report 29 25.06.2021 Information on the Completion of the Offering of Existing Shares of Photon Energy N.V.

After the reporting period, the following reports have been published in the ESPI (Electronic Information Transmission System) system of the Warsaw Stock Exchange:

► None.

7. Investors' calendar

• ► 5 August 2021: Extraordinary General Meeting of Shareholders
• ► 10 August 2021: Entity and consolidated quarterly reports for Q2 2021/H1 2021
• ► 12 August 2021: Online presentation of Photon Energy Group's Q2 2021/H1 2021 results
• ► 12 August 2021: Monthly report for July 2021
• ► 14 September 2021: Monthly report for August 2021
• ► 14 October 2021: Monthly report for September 2021
• ► 10 November 2021: Entity and consolidated quarterly reports for Q3 2021
• ► 15 November 2021: Online presentation of Photon Energy Group's Q3 2021 results
• ► 15 November 2021: Monthly report for October 2021
• ► 22-24 November 2021: Deutsches Eigenkapitalforum in Frankfurt
• ► 14 December 2021: Monthly report for November 2021

8. Investor relations contact

Emeline Parry, Investor relations & Sustainability manager E-mail: ir@photonenergy.com

Photon Energy N.V. Barbara Strozzilaan 201 1083 HN Amsterdam The Netherlands Web: www.photonenergy.com

Amsterdam, 14 July 2021

Georg Hotar, Member of the Board of Directors Michael Gartner, Member of the Board of Directors